20869 - STRATEGIC DECISION MAKING

This course analyzes strategic decision making under uncertainty and offers a comprehensive introduction to “theory-based” strategy and the application of the scientific approach to strategy. The course emphasizes strategic problem identification, framing and formulation and illustrates analytic methods and procedures to do so. It analyzes how Board of Directors, Executives and Entrepreneurs should articulate their strategic visions using theories, causal logics, probabilistic reasoning and experimentation.

1. Strategic decision making

a.Definition, background and context

b.Typlogies of strategic decisions

2. HFLI strategic decisions:

a.Management practices

b.Strategy implementation, execution and operational excellence

c.The enabling role of digital technologies

d.Experimentation in HFLI strategic decisions

3. LFHI strategic decisions:

a.Bayesian networks (DAGs and Bayesian statistics)

b.Strategic problem formulation vs. solving

c.Causal “theories-of-value”

d.Multiple theory experimentation

4. Case studies and simulations

Define strategic decision-making and recognize different types of strategic decisions

Describe and compare the different approaches to strategy proposed by strategy literature

Understand the impact of data, analytics and AI on strategic decisions.

Apply graph theory and Bayesian Networks to conceptual causal structures

Build theories-of value for businesses

Design experiments to test “theories-of value”